Cigarette taxes reduce smoking, but not with everyone: Study

Higher cigarette taxes in recent years have helped reduce smoking in Canada, but not so much among certain groups, prompting researchers to warn against leaning too heavily on tax policy as a tactic for reducing smoking.

A study, conducted by economists at Concordia University in Montreal, showed that for every 10 per cent increase in cigarette taxes between 1998 and 2008, there was a 2.3 per cent overall reduction in people smoking, which in itself, was deemed significant.

But the results haven't been significant within certain socioeconomic or age groups, such as those aged 25 to 44 and people with higher incomes.

"Some people are not going to respond to these taxes," said Mesbah Sharaf, a PhD candidate at Concordia and co-author of the report, which was published in the International Journal of Environmental Research and Public Health. "The tax that we impose on them is just going to reduce their monetary well-being. They're just going to pay money, and suffer from paying money, without cutting the consumption."

The study was based on an assessment of Statistics Canada data on smoking rates between 1998 and 2008 and cigarette taxes during that time. It was found cigarette taxes in all provinces rose substantially.

The combined federal and provincial taxes in Ontario, for example, almost tripled from $12.65 a carton in 1998 to $33.35 in 2008, expressed in constant 2000 dollars to factor out inflation.

Provinces such as British Columbia and Newfoundland and Labrador saw relatively lower rates of tax increases over that time — from about $30 a carton in 1998 to the mid-$40 range in 2008 — though their taxes were already relatively high in the earlier part of the assessment period.

The study found that among people aged 25 to 44 — which had the highest proportion of smokers, averaging 28.8 per cent between 1998 and 2008 — there was a 1.1 per cent decrease for every 10 per cent tax hike, which was not considered significant.

People aged 12 to 65 were included in this analysis, and it was only the 45-65 age group that saw a significant decline in smoking related to tax increases — 2.4 per cent for every 10 per cent more in cigarette taxes.

There was no notable decline in smoking among high-income earnings in relation to higher cigarette taxes, the researchers found. However, a statistically significant 1.8 per cent drop among mid- to low-income earners combined for every 10 per cent increase in taxes was noted.

The paper used Statistics Canada categorizations for income, which considers households with one or two people to be of low income if their combined intake is less than $15,000 a year, middle income $15,000 to $59,999, and high income $60,000 or more.

In some cases, higher cigarette taxes can be counterproductive, Sharaf said, such as for a person with self-control issues who will simply endure more financial hardship but no health benefit because they cannot quit smoking.

As well, he said past studies have shown some people who continue smoking even as costs rise try to the get the most out of their cigarettes, for instance by taking more frequent or deeper puffs from each cigarette, or purchasing cigarettes with higher nicotine levels. This results in adverse health risks for these individuals, Sharaf said.

A university spokesman said the study received no financial support from the tobacco industry, and no conflicts of interest were declared by the researchers as would have been required if they had any connections to a related interest.

Sharaf said he is not against higher taxes on cigarettes but feels they should be accompanied more with other measures to help people quit smoking.

While smoking bans in public places and more prominent warnings on cigarette packaging have been implemented in recent years, Sharaf argued that such initiatives have played a relatively minor role in governments' overall anti-smoking strategies in proportion to taxes.

Asked about specific measures that could help certain groups identified in the study quit smoking, Sharaf said: "In this paper, we are not trying to propose possible ways to discourage smoking. We are trying to express what is going on in reality.

"What we are trying to say is this heavy reliance by policy-makers on cigarette taxes as a key measure to discourage smoking, it should be dealt with cautiously. Taxes are not so effective. Some groups are not responsive to these taxes, and we have to take this into account."

Comments

We encourage all readers to share their views on our articles and blog posts. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, and please keep your comments relevant and respectful. If you encounter a comment that is abusive, click the "X" in the upper right corner of the comment box to report spam or abuse. We are using Facebook commenting. Visit our FAQ page for more information.

Share

Cigarette taxes reduce smoking, but not with everyone: Study

Video

Today's Headline Videos

Best of Postmedia

To steel himself for the year-long journey that began Wednesday, Jonathan Pitre has been going over the hard calculus that underpins his decision to pursue a high-risk, high-reward treatment in Minnesota

When he woke up in tears the morning after he had cried himself to sleep, Rohit Saxena knew what he had to do. Leaving his wife, Lesley, asleep in bed, Rohit went downstairs, opened his laptop and began to write. “They say your kids are your hearts outside your body,” he wrote. “I’ll always be […]

Almost Done!

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.